Sebi allows 16 banks to accept ASBAs

Last Updated: Thursday, December 31, 2009 - 21:06

Mumbai: The market watchdog Sebi on Thursday
allowed the State Bank, ICICI Bank and 14 other banks to
accept ASBAs (application supported blocked amount) to enable
better participation by corporate investors and HINs in IPOs
or rights issues.
The ASBA facility means that money is not released from
the applicant`s account till the shares are alloted to him/her
while applying for IPOs or rights issue.

Besides these two banks, other lenders include Axis
Bank, State Bank of Hyderabad, Corporation Bank, State Bank of
Travancore, IDBI Bank, State Bank of Bikaner and Jaipur, Yes
Bank, Punjab National Bank, Deutsche Bank, Union Bank of
India, HDFC Bank, Bank of Baroda, Vijaya Bank and Bank of
Maharashtra.

These banks have been authorised to accept ASBAs in all
issues from January 1, Sebi said in a release today.
Earlier this month, Sebi extended the ASBA facility to
corporate investors and high networth individuals (HNIs),
which was earlier available only to retail investors. However,
qualified institutional buyers (QIBs) are not eligible to
apply for public or rights issues using the ASBA facility.

The regulator further said the names of other banks will
be added as and when requisite certificate is submitted by
them.

Since the introduction of the ASBA in 2008, it has been
implemented in more than 20 issues and has benefited the
investors, issuers and the markets.

PTI



First Published: Thursday, December 31, 2009 - 21:06

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